What is a PPP project? Which PPP projects are classified according to the authority for investment policy decision in Vietnam?
What is a PPP project?
Pursuant to Article 3 of the Law on Investment in the form of Public-Private Partnership 2020 (amended by Clause 1 Article 3 of the Law on Amendments to the Law on Planning, Law on Investment, Law on Investment in the form of Public-Private Partnership, and Law on Bidding 2024), the following provisions are stipulated:
Article 3. Interpretation of terms
In this Law, the following terms are understood as follows:
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- Shortlist is a list of investors who have passed the prequalification in the form of public bidding with prequalification or a list of investors invited to participate in competitive negotiations.
- PPP project enterprise is an enterprise established by the investor with the sole purpose of signing and executing the PPP project contract.
- A PPP project is a set of proposals related to investing to provide public products and services through implementing one or more of the following activities:
a) Constructing, operating, managing infrastructure works, systems;
b) Renovating, upgrading, expanding, modernizing, operating, managing existing infrastructure works, systems;
c) Operating, managing existing infrastructure works, systems.
- Investment in the form of a public-private partnership (hereinafter referred to as PPP investment) is an investment form implemented based on a timed cooperation between the State and private investors through signing and executing a PPP project contract to attract private investors to participate in a PPP project.
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According to the above provisions, a PPP project is a set of proposals related to investing to provide public products and services through implementing one or more of the following activities:
- Constructing, operating, managing infrastructure works, systems
- Renovating, upgrading, expanding, modernizing, operating, managing existing infrastructure works, systems
- Operating, managing existing infrastructure works, systems
What is a PPP project? Which PPP projects are classified according to the authority for investment policy decision in Vietnam? (Image from the Internet)
Which PPP projects are classified according to the authority for investment policy decision in Vietnam?
Pursuant to Article 4 of the Law on Investment in the form of Public-Private Partnership 2020 (amended by Clause 2 Article 3 of the Law on Amendments to the Law on Planning, Law on Investment, Law on Investment in the form of Public-Private Partnership, and Law on Bidding 2024) stipulating the investment sectors by PPP method and classification of PPP projects:
Article 4. Sectors of investment by PPP method and classification of PPP projects
- PPP projects are implemented in public investment sectors with the aim of investing, constructing infrastructure works, systems, providing public products and services, except for the following cases:
a) Projects under state monopoly as prescribed by law;
b) Projects in sectors of national defense, security, and social order and safety as prescribed by law on public investment.
- PPP projects classified according to the discretion authority of investment policy include:
a) Projects within the discretion authority of investment policy of the National Assembly;
b) Projects within the discretion authority of investment policy of the Prime Minister of the Government of Vietnam;
c) Projects within the discretion authority of investment policy of Ministers, heads of central agencies, other agencies specified in Clause 1 Article 5 of this Law;
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According to the above provisions, PPP projects classified according to the discretion authority of investment policy include:
[1] Projects within the discretion authority of investment policy of the National Assembly
[2] Projects within the discretion authority of investment policy of the Prime Minister of the Government of Vietnam
[3] Projects within the discretion authority of investment policy of Ministers, heads of central agencies, other agencies as follows:
- Ministries, ministerial-level agencies, agencies under the Government of Vietnam, Central agencies of political organizations, Supreme People's Procuracy, Supreme People's Court, State Audit Office, Office of the President, Office of the National Assembly, central agencies of the Vietnam Fatherland Front and political-social organizations
- Provincial People's Committees
- Agencies, organizations established and budgeted by the Government of Vietnam, Prime Minister of the Government of Vietnam according to the provisions of the law on the state budget
[4] Projects within the discretion authority of investment policy of the Provincial People's Councils
[5] Projects within the discretion authority of investment policy of the Provincial People's Committees
[6] Projects not subject to investment policy decisions, including the following projects:
- PPP projects with a total investment equivalent to group B, group C projects according to the law on public investment not using state capital
- PPP projects applying O&M contract types
- PPP projects applying BT contract types without payment requirement
What does State management of investment in the form of PPP in Vietnam include?
Pursuant to Article 8 of the Law on Investment in the form of Public-Private Partnership 2020, the content of state management of investment in the form of PPP includes:
- Issuing, propagating, disseminating, and organizing the implementation of legal normative documents on investment in the form of PPP.
- Summarizing, evaluating, reporting on the situation of implementing activities of investment in the form of PPP.
- Inspecting, auditing, supervising the implementation of legal provisions on investment in the form of PPP.
- Resolving complaints, denunciations, handling violations related to investment activities in the form of PPP; resolving proposals in investor selection.
- Organizing and implementing investment promotion, international cooperation on investment in the form of PPP.
- Guiding, supporting, resolving procedural difficulties upon the request of investors, PPP project enterprises when implementing investment activities in the form of PPP.
